Wednesday, October 27

Turnover Rate in the Banking Industry: Problematic but Reparable

By: Eric Wang

The high turnover rate of employees in the banking industry has caused impacts on companies’ development. According to one survey, junior analysts’ retention rate has climbed to almost 50 percent high. Debates on maintaining employees and preventing damage to organizational effectiveness have brought attention from corporations’ executives. Symptoms accompanied by a sky-high turnover rate include low job satisfaction, damage to the team working, and lack of loyalty to the company.

Negative Cause: What makes the employee want to leave

The studies conducted in the regional banking industry showed that low job satisfaction decreases performances and leads to resignations. In the banking industry, compliments for the job contents and organizational management are prevalent among junior analysts. Employees’ satisfaction is closely related to the perception of their job outlooks. Without a promising future and undesirable current situation, the reasons for the resignation are reasonable.

Another study reveals the high pressure, massive volume workload, and oppressed working circumstance also hinder employees out of the company. The conclusion is useful in the sense of measuring employees’ most cared for factors. Their internal development and work-life balance are all interrupted with these adverse circumstances presenting. These findings could be treated as sentencing the deteriorations of the highly competitive climate in the banking industry.

Time to Change: Why Positive HR Management Works?

Positive human resources management is effective in the Chinese banking industry in junior analysts and senior management. For instance, one study’s finding demonstrates that interactions among well-being-oriented management and resilience could promote better performance. The scale of research across sixteen banks and sixty-two subdivisions proved the plausibility of applying these enhanced human resources practices on a larger scale.        Evidence collected from the study can inspire the innovations of the banking industry. With finance as a mature and well-developed industry, many managers fail to recognize the importance of continuously improving management. Bureaucracy and redundancy work efficiency may prevent the companies from inquiring about employees’ issues and caring about their wellbeing.

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